Still No Resolution on Budget Extension to Avoid Shutdown

With just more than two weeks left before the end of the current fiscal year September 30, political leaders have raised many options, but have reached no agreement, for preventing a partial government shutdown. While such brinksmanship is a nearly annual occurrence, actual shutdowns are rare, the last occurring in 2013; before that, the most recent had been in late 1995-early 1996. With Congress set to recess again at the end of the month, enactment of a stopgap bill carrying until sometime after the elections, with full-year funding to be decided afterward, remains the most likely prospect. Options include passing a “continuing resolution” through either early December—December 9 is one date being mentioned—or into early 2017, possibly as late as March. There are various political arguments for and against each, with the elections themselves also possibly playing a role. Typically such measures continue spending at current levels with a few exceptions; one this time might be to add funding to address the Zika virus outbreak, a priority that has bogged down as the regular appropriations process stalled and whose inclusion might be enough to spur an agreement. Another option that has been used in some years is a short-term extension of perhaps only a few weeks to give more time to decide a course; however, legislators are considered reluctant to stay in session beyond the end of September.

Sponsored

The Department of Education’s Public Service Loan Forgiveness program offers federal employees and military personnel a way to reduce monthly loan payments and have the loan forgiven after 120 income-adjusted payments.